Assume that at the beginning of 2020, Advanced Air purchased a Bombardier Q400 aircraft at a cost of $23,000,000. Advanced expects the plane to remain useful for five years (5,075,000 km) and to have a residual value of $6,000,000. Advanced expects the plane to be flown 875,000 km the first year, 1,300,000 km each year during years 2 through 4, and 300,000 km the last year. 1. Compute Advanced's first-year depreciation on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-diminishing-balance 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Which method results in the highest carrying amount? Which method produces the lowest carrying amount? Briefly explain why. Requirement 1. Compute Advanced's first-year depreciation on the plane. a. Using the straight-line method, depreciation is $. (Hold all decimals during interim calculations. Round the final solution to the nearest whole number.) b. Using the units-of-production method, depreciation is $ (Hold all decimals during interim calculations. Round the final solution to the nearest whole number.) c. Using the double-diminishing-balance method, depreciation is $ (Hold all decimals during interim calculations. Round the final solution to the nearest whole number.) Requirement 2. Show the airplane's carrying amount at the end of the first year under each depreciation method. Which method results in the highest carrying amount? Which method produces the lowest carrying amount? Briefly explain why. (Use parentheses or a minus sign when subtracting numbers.) Units-of- Double-Diminishing Carrying amount: Straight-Line Production Balance Cost Less: Accumulated depreciation Carrying amount method results in the lowest carrying amount since it writes off a amount of the results in the highest carrying amount and will vary depending on the use of the asset. asset's cost near the start of its useful life